More than a third of employers (37%) are considering making staff redundant over the next six months but according to law firm Pinsent Masons, 28% were not aware that failure to consult employees appropriately could result in a penalty - meaning they must pay 90 days salary to all affected staff.
Almost half (48%) did not anticipate any problems with their redundancy programmes.
Tom Flanagan, employment partner at the firm, said: "Companies are leaving themselves open to claims from employees and unions if the redundancy process isn't carried out correctly.
"These figures show there is a level of complexity surrounding collective redundancy exercises that many businesses haven't got to grips with."
Most employers do not understand redundancy laws, making them liable for penalties
More than eight out of ten employers (84%) carrying out redundancy consultations are unaware of the correct time to consult with employees.
